Donald Trump says trade deal with India not finalised, hints at 20–25% tariffs

US President Donald Trump on Tuesday said a trade agreement with India has not yet been finalised and hinted that higher tariffs on Indian imports, possibly in the range of 20% to 25%, could be on the table.

Trump, speaking to reporters aboard Air Force One while returning to Washington from Scotland, was asked if the deal with India is finalised.

“No, it’s not,” the US president said.

He was also asked about reports that India is preparing to face higher US tariffs between 20-25%, to which he replied, “I think so.”

On what he is expecting from the deal with India, he said, “We are going to see. But India has been a good friend. But India has charged basically more tariffs than almost any other country… over the years. But now I'm in charge, and you just can't do that.”

India and the US teams concluded the fifth round of talks for the agreement last week in Washington.

A US trade delegation is expected to visit New Delhi on August 25 for a sixth round of negotiations.

On April 2 this year, Trump announced high reciprocal tariffs. India has been subject to a 26% tariff. The implementation of high tariffs was immediately suspended for 90 days till July 9 and later until August 1, as America is negotiating trade deals with various countries.

India has so far resisted US demands for tariff reductions on sensitive sectors such as agriculture and dairy, areas farmers' unions have warned should remain off the table. India has never offered dairy tariff concessions in previous free trade agreements.

At the same time, India is seeking relief from US duties on steel and aluminum (currently 50%), automobiles (25%), and additional tariffs affecting textiles, leather, gems and jewelry, and select agricultural exports including bananas and shrimp.

Washington is pushing for broader access for US exports ranging from electric vehicles and petrochemicals to apples, dairy products, wines, and genetically modified crops.

India has also retained the right under World Trade Organization (WTO) rules to impose retaliatory tariffs, should the talks fail.